For a monopolistically competitive firm, profit is maximized when:

A.MC < MR.

B.MC=P.

C.None of the above.

D.MC>ATC.

E.ATC>P.

For a monopoly firm, if AVC = $20, P = $12, and ATC = $22, then the firm should:

1. A.produce at the point where MC = MR.
2. B.increase production.
3. C.reduce production.
4. D.shut down.

For the monopolist, average profit per unit equals:

1. A.P - MC.
2. B.P - ATC.
3. C.P - AVC.
4. D.P - MR.

A firm operates in amonopolistically competitive market, if the firm is earning a normal profit, then:

1. A.P< MR.
2. B.P= ATC.
3. C.P= MC.
4. D.P= MR.